Sectoral Strategy For Exports 525.pdf

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Sectoral Strategy For Exports 525
Short note on EXIM Bank: Full Form, Meaning, Roles and Functions
A sectoral strategy for exports is a plan that focuses on promoting the export of goods and
services from a particular sector of the economy. It is a plan that focuses on specific sectors
of the economy that have the potential to be successful in the global market.
This type of strategy is used to target specific markets, develop new products or services, or
improve the competitiveness or overcome challenges faced by exporters of the sector
There are many benefits
● Increase the visibility of a sector in the global market
● Attract investment and talent to the sector
● Create jobs and boost economic growth
● Improve the competitiveness of a sector in the global market
factors that can be considered when developing a sectoral strategy for exports
● The size and growth potential of the sector
● The competitive landscape
● The regulatory environment
● The availability of resources
● The needs of the market
examples of sectoral strategies for exports:
Strategies Used in Export Marketing
● The Indian government has a sectoral strategy for the IT sector. This strategy
aims to make India a global hub for IT services and products.
● The Chinese government has a sectoral strategy for the manufacturing sector.
This strategy aims to make China a global leader in manufacturing.

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● The Brazilian government has a sectoral strategy for the agricultural sector.
This strategy aims to make Brazil a major exporter of agricultural products.
4 International Marketing Strategies for New Exporters
● Pick the low-hanging fruit. This means starting with markets that are similar to your
own in terms of culture, language, and regulations.
● Focus on the right niches. Don't try to be everything to everyone. Instead, focus on
a specific niche where you can compete effectively.
● Build and nurture your competitive advantages. What makes your products or
services unique? How can you differentiate yourself from your competitors?
● Drop bad clients and keep the rest. Not all clients are created equal. Focus on the
clients who are a good fit for your business and who will help you achieve your goals.
main steps in establishing a successful export strategy:
1. Know your company and industry. What are your strengths and weaknesses? What
are the trends in your industry?
2. Determine how your business model will translate. How will you sell your products or
services in foreign markets? What are the cultural and regulatory differences you
need to be aware of?
3. Identify target markets. Where are your products or services in demand? What are
the economic and political conditions in these markets?
4. Develop a business plan. This will outline your goals, objectives, and strategies for
exporting. It will also help you to track your progress and make necessary
adjustments.
Nature of Export Strategy
International Trade

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An export strategy is a plan that outlines the steps a company will take to sell its goods or services to
customers in foreign markets.
The nature of an export strategy depends on a number of factors, including the size and resources of
the company, the target markets, and the competitive landscape.
1. Market research: Before entering a foreign market, a company must conduct research to
identify potential customers, competitors, and market trends. This information can help the
company tailor its products and marketing efforts to meet the needs of the target market.
2. Product adaptation: The company may need to modify its products or services to meet the
needs and preferences of customers in the target market. This could involve making changes
to product design, packaging, labeling, or pricing.
3. Distribution channels: The company must determine the best way to distribute its products in
the target market. This could involve setting up its own distribution network or working with
local distributors, wholesalers, or retailers.
4. Marketing and promotion: The company must develop marketing and promotion strategies to
raise awareness of its products and differentiate them from competitors. This could involve
advertising, public relations, trade shows, or other promotional activities.
5. Legal and regulatory compliance: The company must comply with the legal and regulatory
requirements of the target market. This could involve obtaining licenses or permits, complying
with customs and import/export regulations, and adhering to local laws and regulations.
6. Logistics and transportation: The company must ensure that its products are shipped and
delivered to the target market in a timely and cost-effective manner. This could involve working
with logistics providers, freight forwarders, or customs brokers.
An export strategy is focused on identifying and pursuing opportunities for growth in foreign markets,
while also managing the risks and challenges associated with international trade.
Significance of Export Strategy
An export strategy is essential for any ECONOMY seeking to enter and succeed in foreign markets.
Here are some of the key reasons why an export strategy is significant:
1. Diversification of revenue streams: Exporting allows a company to diversify its customer base
and revenue streams beyond its domestic market. This can help to mitigate risks associated
with economic downturns, changes in consumer behavior, or other factors that may impact the
domestic market.
2. Increased profitability: Entering new markets can create economies of scale that may not be
possible in the domestic market. This can lead to increased profitability through higher sales
volume and lower production costs.

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3. Competitive advantage: Exporting allows a company to gain a competitive advantage by
accessing new markets, customers, and suppliers. This can lead to increased market share and
profitability.
4. Innovation: Exporting can encourage innovation by exposing a company to new ideas,
technologies, and business practices from different cultures and markets.
5. Long-term growth potential: Exporting can provide long-term growth opportunities that may
not be possible in the domestic market. This can help to sustain the company's growth and
profitability over the long-term.
6. Reach new markets: Exporting can help companies to reach new markets and expand their
customer base. This can be especially beneficial for companies that are facing saturated
domestic markets
An export strategy is significant because it can help a company to expand its customer base, increase
profitability, gain a competitive advantage, encourage innovation, and achieve long-term growth.
Formulation of Export Strategy
Develop an Export Plan
Formulating an effective export strategy requires careful planning and consideration of various
factors. Here are some key steps to follow when formulating an export strategy:
1. Define your export goals. What do you hope to achieve by exporting? Do you want to
increase sales, enter new markets, or build brand awareness?
2. Conduct market research: The first step in formulating an export strategy is to conduct market
research to identify potential target markets. This involves analyzing market size, growth
potential, competition, cultural differences, and regulatory requirements.
3. Choose the right products and services: Based on the market research, identify the products
and services that are likely to be successful in the target market. Consider factors such as
pricing, quality, and packaging.
4. Evaluate resources and capabilities: Determine whether the economy has the necessary
resources and capabilities to enter the target market. This includes assessing the financial
resources, human resources, and technological capabilities.
5. Develop a marketing plan: Develop a marketing plan that outlines how the economy will
promote its products and services in the target market. This may involve developing
advertising campaigns, participating in trade shows, and building relationships with local
distributors.
6. Determine distribution channels: Decide on the most appropriate distribution channels for the
target market. This may involve setting up local offices, working with local distributors, or
developing an online presence.
7. Consider legal and regulatory requirements: Identify any legal and regulatory requirements
that must be met to export products and services to the target market. This may involve
obtaining permits, licenses, or certifications.

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8. Develop a budget: Develop a budget for the export strategy that includes all costs associated
with entering the target market. This includes costs associated with marketing, distribution,
legal and regulatory compliance, and logistics.
The formulation of an export strategy involves a comprehensive analysis of the market, product,
resources, marketing, distribution channels, legal requirements, and budget. The strategy should be
flexible and adaptable to changes in the market or other external factors that may impact the
company's export operations.
Importance of Sectoral Strategy for exports
Sectoral strategy is a focused approach that aims to promote exports in specific sectors or industries.
Developing a sectoral export strategy is crucial for countries that aim to increase their export
competitiveness, promote economic growth, and diversify their economies. Here are some reasons
why sectoral export strategies are important:
1. Identifies export potential: A sectoral export strategy allows for the identification of sectors
that have export potential. Focusing on specific sectors helps to concentrate efforts and
resources on areas that can contribute the most to export growth.
2. Improves export competitiveness: By focusing on specific sectors, a country can develop the
expertise, knowledge, and resources needed to improve its export competitiveness in those
sectors. This can lead to increased productivity, efficiency, and innovation.
3. Encourages investment: A sectoral export strategy can attract foreign investment by
promoting the country's comparative advantages in specific sectors. This can lead to increased
job creation, income generation, and economic growth.
4. Enhances market intelligence: Developing a sectoral export strategy involves in-depth research
and analysis of markets, competitors, and industry trends. This information can help
businesses to make informed decisions and develop effective marketing strategies.
5. Increases exports diversification: Focusing on specific sectors allows for the diversification of
exports, reducing reliance on a limited number of sectors and markets. This can help to
mitigate risks associated with economic volatility, changes in demand, or other external factors
that may impact the country's export performance.
Overall, a sectoral export strategy is essential for countries seeking to increase their export
competitiveness, promote economic growth, and diversify their economies. It helps to identify export
potential, improve competitiveness, encourage investment, enhance market intelligence, and increase
exports diversification.
Problems and Challenges of India's Export Sector
India's export sector faces several problems and challenges that limit its growth potential. Some of the
main challenges include:

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1. Lack of export-oriented manufacturing: India's manufacturing sector is not export-oriented,
which limits the potential for export growth. This is due to several factors, including low
productivity, poor quality, and a lack of investment in technology and innovation.
2. Inefficient logistics and infrastructure: India's logistics and infrastructure are often cited as
major barriers to export growth. The country's transportation network, ports, and customs
procedures are inefficient and expensive, which increases the cost of exporting goods.
3. Trade barriers and protectionism: India faces significant trade barriers and protectionism in
key export markets, such as the United States and the European Union. This limits the potential
for Indian companies to export to these markets.
4. Limited access to finance: Indian exporters often face challenges in accessing finance,
particularly for small and medium-sized enterprises (SMEs). This limits their ability to invest in
technology and innovation, which is critical for export growth.
5. Foreign exchange volatility: India's export sector is vulnerable to fluctuations in foreign
exchange rates. This can make exports more expensive and less competitive in global markets.
6. Limited diversification: India's export sector is heavily dependent on a few key sectors, such as
textiles and pharmaceuticals. This limits the country's ability to diversify its export base and
reduces its resilience to external shocks.
7. Infrastructure bottlenecks: India's infrastructure, particularly its ports and roads, is not
well-equipped to handle the volume of exports. This leads to delays and higher costs,
which makes it difficult for Indian exporters to compete in the global market.
8. High logistics costs: The high cost of logistics in India is another challenge for
exporters. This includes the cost of transportation, storage, and customs clearance.
These costs can be a significant burden for exporters, especially small and
medium-sized enterprises (SMEs).
9. Competition from other countries: India faces stiff competition from other countries,
such as China and Vietnam, which have well-established export sectors. These
countries offer lower labor costs and other advantages, which makes it difficult for Indian
exporters to compete.
10. Government policies: India's government policies can also be a challenge for
exporters. For example, the government's import substitution policies can make it difficult
for exporters to get the raw materials they need.
11. Compliance with regulations: India has a complex regulatory environment, which can
be a challenge for exporters. They need to comply with a variety of regulations, including
import and export regulations, customs regulations, and product standards.
12. Lack of awareness: Many Indian exporters are not aware of the opportunities available
in the global market. They also lack the knowledge and skills they need to export their
products successfully.
To overcome the challenges faced by India's export sector
1. Improve infrastructure
2. Reduce logistics costs

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3. Provide support to SMEs
4. Streamline regulation
5. Promote awareness
6. Support innovation
○ Why India's Net Exports Have Fallen While It Fails to Overcome Import
Dependence
○ India’s Slowing Exports
○ Why India's Net Exports Have Fallen While It Fails to Overcome Import
Dependence
UNIT 2
Export of Agricultural Products : Performance
India’s Farm Exports.
India is one of the world's largest producers and exporters of agricultural products. Agriculture is a key
sector of the Indian economy, and exports of agricultural products have played an important role in the
country's economic growth
India is a major exporter of agricultural products, and its agricultural exports have been growing
steadily in recent years.
In 2021-22, India's agricultural exports reached a record $50.2 billion, up from $41.3 billion in
2020-21.This represents a growth of 20%.
The top agricultural export products from India are: RSST-F-WOO
● Rice: India is the world's second-largest exporter of rice, and rice exports
accounted for 19% of India's total agricultural exports in 2021-22.
In 2021-22, the India exported $23.4 billion worth of rice
● Sugar: India is the world's second-largest exporter of sugar, and sugar exports
In 2021-22, the country exported $6.7 billion worth of sugar.
● Spices: India is the world's largest exporter of spices, and spices exports
● Tea: India is the world's second-largest exporter of tea, and tea exports

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● Fruits and vegetables: India is a major exporter of fruits and vegetables, and
fruits and vegetables exports accounted for 6% of India's total agricultural exports in
2021-22.
In 2021-22, the country exported $4.9 billion worth of fruits and vegetables.
● Wheat: India is a major exporter of wheat. In 2021-22, the country exported $3.5
billion worth of wheat.
● Oilseeds: India is a major exporter of oilseeds. In 2021-22, the country exported $3.4
billion worth of oilseeds
● Other products: Other important agricultural export products from India include
cotton, marine products, and dairy products.
Here is an overview of India's performance in the export of agricultural products:
1. Major agricultural exports: India's major agricultural exports include rice, wheat, sugar, cotton,
tea, spices, and fresh fruits and vegetables.
2. Growth in agricultural exports: India's agricultural exports have grown significantly in recent
years. In the financial year 2020-21, India's agricultural exports reached USD 41.25 billion, up
from USD 35.09 billion in the previous year.
3. Top export destinations: India's major export destinations for agricultural products include the
United States, Bangladesh, the United Arab Emirates, Iran, and Nepal.
4. Challenges in agricultural exports: Despite the growth in agricultural exports, there are several
challenges that limit the sector's potential. These include a lack of modern infrastructure, poor
storage facilities, low productivity, and the impact of climate change.
5. Government initiatives: The Indian government has launched several initiatives to support
agricultural exports. These include the Agriculture Export Policy, which aims to double
agricultural exports by 2022, and the Pradhan Mantri Kisan Sampada Yojana, which aims to
develop modern infrastructure for food processing.
The performance of India's agricultural exports has been driven by a number of factors,
including:
● The growing demand for Indian agricultural products in the global market:

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● The government's focus on improving the export of agricultural products:
● The increasing production of agricultural products in India:
The performance of India's agricultural exports is expected to remain strong in the coming
years. The growing demand for Indian agricultural products in the global market, the
government's focus on improving the export of agricultural products, and the increasing
production of agricultural products in India are some of the factors that are expected to boost
exports.
The export of agricultural products is an important driver of India's economic growth. While there are
challenges that need to be addressed, the government's initiatives and focus on this sector have
helped to boost exports and improve the performance of the agricultural sector.
Problems and Prospects of 1. Coffee 2. Tea 3. Cashew 4. Spices 5. Tobacco
The performance, problems, market, and prospects of 5 important agricultural export
products from India:
Coffee
Coffee is one of the most popular beverages in the world, and its global export market is worth
billions of dollars.The performance of the coffee export market has been strong in recent years.
This is due to the increasing demand for coffee in the global market, the rising incomes in
developing countries, and the growing popularity of specialty coffee.
● Performance: India is the fifth-largest producer of coffee in the world, and the
sixth-largest exporter. In 2021-22, India exported 318,000 tonnes of coffee worth
$581 million.
Problems:
● Low productivity: India's coffee productivity is one of the lowest in the world, due to
factors such as poor quality of planting material, inadequate irrigation, and pests and
diseases.

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● Coffee rust: Coffee rust is a fungal disease that is a major threat to coffee crops. The
disease has caused widespread damage to coffee crops in recent years.
● Lack of investment: The coffee industry in India has not received the same level of
investment as other agricultural sectors, such as tea and spices.
● Competition from other countries: India faces stiff competition from other
coffee-producing countries, such as Brazil, Vietnam, and Colombia.
Market:
● Global market size: The global coffee market was valued at $108.5 billion in 2021.
● Market in India: India is the world's fifth-largest producer of coffee and the sixth-largest
exporter. The Indian coffee market was valued at $3.5 billion in 2021.
● Top exporters: The top exporters of coffee in 2021 were Brazil, Vietnam, Colombia,
Indonesia, and Ethiopia.
● Top importers: The top importers of coffee in 2021 were the United States, Germany,
Canada, Italy, and Japan.
Prospects: The coffee industry in India has the potential to grow significantly in the coming
years, if the challenges mentioned above are addressed. The government is taking steps to
address these challenges, such as providing financial assistance to farmers and promoting
the cultivation of high-yielding varieties of coffee.
● Increasing demand
● Growing popularity of specialty coffee
● Government support
The global coffee market is expected to grow at a CAGR of 5.2% from 2022 to 2028.
Tea
Tea is one of the most popular beverages in the world, and its global export market is worth
billions of dollars.
● Performance: India is the second-largest producer of tea in the world, and the
largest exporter. In 2021-22, India exported 2.5 million tonnes of tea worth $1.8
billion.

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Problems:
○ Declining domestic consumption: Tea consumption in India has been
declining in recent years, due to factors such as changing consumer
preferences and increasing competition from other beverages.
○ Rising input costs: The cost of production of tea has been rising in recent
years, due to factors such as rising wages and the increasing use of fertilizers
and pesticides.
○ Pests and diseases: Pests and diseases are a major threat to tea crops. The
pests and diseases can cause widespread damage to tea crops.
○ Competition from other countries: India faces stiff competition from other
tea-producing countries, such as Sri Lanka, Kenya, and China.
Market:
● Global market size: The global tea market was valued at $84.2 billion in 2021.
● Market in India: India is the world's second-largest producer of tea and the largest
exporter. The Indian tea market was valued at $12.5 billion in 2021.
● Top exporters: The top exporters of tea in 2021 were China, India, Kenya, Sri Lanka,
and Vietnam.
● Top importers: The top importers of tea in 2021 were the United States, Russia,
Germany, the United Kingdom, and Pakistan.
Prospects: The tea industry in India has the potential to grow significantly in the coming
the cultivation of high-yielding varieties of tea.
● Growing popularity of specialty tea
● The global tea market is expected to grow at a CAGR of 4.5% from 2022 to 2028.

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Cashew
Cashew kernels are a popular snack food and ingredient in many dishes.
Performance: India is the world's largest producer of cashew nuts, and the
second-largest exporter. In 2021-22, India exported 1.2 million tonnes of cashew nuts
worth $4.2 billion.
Problems: The cashew industry in India faces a number of challenges, including:
● Low productivity: India's cashew productivity is one of the lowest in the world, due
to factors such as poor quality of planting material, inadequate irrigation, and pests
and diseases.
● Lack of investment: The cashew industry in India has not received the same level
of investment as other agricultural sectors, such as tea and spices.
● Pests and diseases: Pests and diseases are a major threat to cashew trees. The pests
and diseases can cause widespread damage to cashew trees. This could lead to a
decrease in cashew production and an increase in cashew kernel prices.
cashew-producing countries, such as Vietnam, Brazil, and Indonesia.
Market:.
● Global market size: The global cashew market was valued at $12.4 billion in 2021.
● Market in India: India is the world's largest producer of cashew and the second-largest
exporter. The Indian cashew market was valued at $4.5 billion in 2021.
● Top exporters: The top exporters of cashew in 2021 were India, Vietnam, Benin,
Nigeria, and Tanzania.
● Top importers: The top importers of cashew in 2021 were the United States, the
Netherlands, China, Vietnam, and Germany.

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Prospects: The cashew industry in India has the potential to grow significantly in the coming
the cultivation of high-yielding varieties of cashew.
● Growing popularity of cashew-based products:
● Government support:
● The global cashew market is expected to grow at a CAGR of 5.5% from 2022 to
2028.
Spices
Spices are a global commodity with a market value of billions of dollars.
Performance: India is the world's largest producer and exporter of spices. In 2021-22,
India exported 2.2 million tonnes of spices worth $10.2 billion.
Problems: The spice industry in India faces a number of challenges, including:
● Low productivity: India's spice productivity is one of the lowest in the world, due to
factors such as poor quality of planting material, inadequate irrigation, and pests and
diseases.
● Lack of investment: The spice industry in India has not received the same level of
investment as other agricultural sectors, such as tea and coffee.
● Pests and diseases: Pests and diseases are a major threat to spice crops. The pests
and diseases can cause widespread damage to spice crops.
spice-producing countries, such as China, Vietnam, and Indonesia.
Market:
The global spice export market is expected to grow at a CAGR of 5.8% from 2022 to 2028.

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● Global market size: The global spices market was valued at $162.8 billion in 2021.
● Market in India: India is the world's largest producer and exporter of spices. The Indian
spices market was valued at $35 billion in 2021.
● Top exporters: The top exporters of spices in 2021 were India, China, Indonesia,
Vietnam, and Brazil.
● Top importers: The top importers of spices in 2021 were the United States, Germany,
the Netherlands, the United Kingdom, and France.
Prospects:
● Growing popularity of ethnic cuisine
● The global spice market is expected to grow at a CAGR of 5% from 2022 to 2028.
Tobacco
Performance: India is the world's third-largest producer of tobacco, and the second-largest
exporter. In 2021-22, India exported 1.2 million tonnes of tobacco worth $2.7 billion.
Problems: The tobacco industry in India faces a number of challenges, including:
● Health concerns: Tobacco use is a major health hazard, and there is increasing
awareness of the risks associated with tobacco consumption.
● Government regulations: The government has imposed stricter regulations on the
tobacco industry, such as banning the sale of tobacco products to minors.
tobacco-producing countries, such as China, Brazil, and Indonesia.
● Counterfeiting: The tobacco industry is facing a growing problem with counterfeiting.
This is leading to a decrease in the revenue of legitimate tobacco companies.
● Global market size: The global tobacco market was valued at $842.3 billion in 2021.

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● Market in India: India is the world's second-largest producer of tobacco and the
third-largest exporter. The Indian tobacco market was valued at $20 billion in 2021.
● Top exporters: The top exporters of tobacco in 2021 were China, Brazil, India, the
United States, and Indonesia.
● Top importers: The top importers of tobacco in 2021 were the United States, China,
Germany, Japan, and the United Kingdom.
Prospects: The tobacco industry in India has the potential to decline in the coming years, due
to the challenges mentioned above. However, the industry could still grow in niche markets,
such as the organic tobacco market.
● Growing popularity of new products.
● The global tobacco market is expected to decline at a CAGR of 1.5% from 2022 to
2028.
The agricultural export sector in India has the potential to grow significantly in the coming years.
However, the sector faces a number of challenges, such as low productivity, lack of investment,
and competition from other countries. The government is taking steps to address these
challenges, and if successful, the agricultural export sector could become a major driver of
economic growth in India.
Overall, Brazil, India, China, and Vietnam are the leading exporters of agricultural products.
The USA, Germany, France, UK, and China are the leading importers of agricultural
products.

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Unit 3
Exports of Marine Products
Exports of marine products, also known as seafood exports, are an important part of India's
agricultural exports. India has a long coastline of over 7,500 km and an exclusive economic
Exports of 1. Marine Products 2. Dairy Products 3.Fruits and Vegetables 4. Processed Foods 5. The
Problem and Prospects of their Exports 6. Their Major Markets
Exports of Marine Products:
1. Marine products are one of the largest export categories in India's agriculture sector. India has
a vast coastline and is home to a variety of marine species, including fish, shrimp, crab, and
lobster. The major export destinations for Indian marine products include the USA, Southeast
Asia, and Europe. However, the industry faces several challenges, including overfishing,
environmental degradation, and lack of infrastructure. Prospects for the industry include
increasing demand from emerging markets and growing interest in organic and sustainable
seafood.
Exports of Dairy Products:
2. India is the largest producer of milk in the world and has a significant export potential in dairy
products. However, the export of dairy products from India is relatively low due to various
challenges such as low productivity, lack of infrastructure, and quality standards. The major
export destinations for Indian dairy products include Bangladesh, the UAE, and Egypt.
Prospects for the industry include increasing demand for dairy products in emerging markets
and rising interest in plant-based alternatives.
Exports of Fruits and Vegetables:
3. Fruits and vegetables are an important category in India's agricultural exports, with major
products including mangoes, bananas, grapes, and onions. The major export destinations for
Indian fruits and vegetables include the UAE, the UK, and Bangladesh. However, the industry
faces challenges such as poor post-harvest infrastructure, inadequate cold storage facilities,
and inconsistent quality. Prospects for the industry include increasing demand for fresh
produce in international markets and growing interest in organic and sustainably sourced
products.
Exports of Processed Foods:
4. Processed food exports from India include products such as canned fruits and vegetables,
snacks, and ready-to-eat meals. The major export destinations for Indian processed foods
include the USA, the UAE, and Saudi Arabia. However, the industry faces challenges such as
inadequate packaging and labeling standards, inconsistent quality, and lack of innovation.
Prospects for the industry include increasing demand for convenience foods in international
markets and growing interest in healthy and natural products.

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Problems and Prospects of their Exports:
5. The major challenges faced by India's agricultural export sector include limited access to
finance and credit, inadequate infrastructure, inconsistent quality, and dependence on a few
major export markets. However, the sector also has significant prospects, including rising
demand for agricultural products in emerging markets, growing interest in organic and
sustainably sourced products, and increasing demand for convenience foods.
Major Markets:
6. The major markets for Indian agricultural exports vary by product category. For marine
products, major markets include the USA, Southeast Asia, and Europe. For dairy products,
major markets include Bangladesh, the UAE, and Egypt. For fruits and vegetables, major
markets include the UAE, the UK, and Bangladesh. For processed foods, major markets include
the USA, the UAE, and Saudi Arabia. However, there is a need to diversify export markets and
explore new opportunities to ensure the long-term growth and sustainability of India's
agricultural export sector.
Unit 4
Export Performance Problems and Prospects of Manufactured goods such as 1. Electronic and
Engineering Goods 2. Chemicals 3. ores and minerals 4. Textiles and Readymade Garments
Electronic and Engineering Goods:
1. India's exports of electronic and engineering goods have been growing steadily over the years,
and the sector accounts for a significant share of India's total exports. Major products in this
category include machinery, electrical equipment, and automotive components. The major
export destinations for Indian electronic and engineering goods include the USA, the UAE, and
Germany. However, the sector faces challenges such as intense competition from other Asian
countries and inadequate infrastructure. Prospects for the sector include increasing demand
for electrical equipment and machinery in emerging markets and growing interest in
sustainable and energy-efficient products.
Chemicals:
2. Chemicals are a major export category for India, with major products including organic
chemicals, plastics, and dyes. The major export destinations for Indian chemicals include the
USA, China, and the UAE. However, the sector faces challenges such as rising input costs and
environmental concerns. Prospects for the sector include increasing demand for chemicals in
emerging markets and growing interest in sustainable and eco-friendly products.
Ores and Minerals:
3. India is a significant producer of ores and minerals, including iron ore, bauxite, and manganese.
The major export destinations for Indian ores and minerals include China, Japan, and South

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Korea. However, the sector faces challenges such as declining global demand and
environmental concerns. Prospects for the sector include increasing demand for metals in
emerging markets and the introduction of new mining technologies.
Textiles and Readymade Garments:
4. Textiles and readymade garments are one of the largest export categories for India and
account for a significant share of India's total exports. Major products in this category include
cotton textiles, silk fabrics, and readymade garments. The major export destinations for Indian
textiles and readymade garments include the USA, the UAE, and the UK. However, the sector
faces challenges such as rising competition from other countries and issues related to labor
and environmental standards. Prospects for the sector include increasing demand for textiles
and garments in emerging markets and the adoption of sustainable and ethical practices.
Market:
The major export markets for India's manufactured goods vary by product category. For electronic and
engineering goods, major markets include the USA, the UAE, and Germany. For chemicals, major
markets include the USA, China, and the UAE. For ores and minerals, major markets include China,
Japan, and South Korea. For textiles and readymade garments, major markets include the USA, the
UAE, and the UK. However, there is a need to diversify export markets and explore new opportunities to
ensure the long-term growth and sustainability of India's manufacturing sector.
Unit 5
Export Performance , Problems and Prospects of : 1. Handicrafts 2. Gems & Jewellery 3. Carpets 4.
Leather Products 5. Cotton and Cotton Yarns 6. Machinery and Transport 7. services Exports;
Mention the major markets of all
Handicrafts:
1. India has a rich tradition of handicrafts, which includes a wide range of products such as
pottery, textiles, and woodcraft. The major export destinations for Indian handicrafts include
the USA, the UK, and Germany. However, the sector faces challenges such as lack of access to
modern technology, inadequate marketing channels, and poor infrastructure. Prospects for the
sector include growing demand for handmade and eco-friendly products in developed markets
and the promotion of traditional crafts through government initiatives.
Gems & Jewellery:
2. Gems and jewellery are one of the largest export categories for India and account for a
significant share of India's total exports. The major export destinations for Indian gems and
jewellery include the USA, Hong Kong, and the UAE. However, the sector faces challenges such
as rising competition from other countries and issues related to compliance with international
standards. Prospects for the sector include increasing demand for luxury goods in emerging

19
markets and the adoption of new technologies for gemstone processing and jewelry
manufacturing.
Carpets:
3. India is a significant producer of handmade carpets, with major export destinations including
the USA, the UK, and Germany. However, the sector faces challenges such as rising
competition from other countries and issues related to labor standards and environmental
sustainability. Prospects for the sector include growing demand for luxury home goods in
developed markets and the promotion of handmade and eco-friendly products through
government initiatives.
Leather Products:
4. India is a major producer of leather products, including footwear, bags, and garments. The
major export destinations for Indian leather products include the USA, the UK, and Germany.
However, the sector faces challenges such as lack of access to modern technology and issues
related to labor standards and environmental sustainability. Prospects for the sector include
growing demand for high-quality leather products in developed markets and the adoption of
sustainable and ethical practices.
Cotton and Cotton Yarns:
5. Cotton and cotton yarns are one of the largest export categories for India and account for a
significant share of India's total exports. The major export destinations for Indian cotton and
cotton yarns include Bangladesh, Vietnam, and China. However, the sector faces challenges
such as volatile global prices and issues related to compliance with international standards.
Prospects for the sector include increasing demand for sustainable and organic cotton in
developed markets and the adoption of new technologies for cotton processing.
Machinery and Transport:
6. India is a significant producer of machinery and transport equipment, including automobiles,
aircraft, and industrial machinery. The major export destinations for Indian machinery and
transport equipment include the USA, the UAE, and Germany. However, the sector faces
challenges such as intense competition from other countries and issues related to compliance
with international standards. Prospects for the sector include increasing demand for industrial
machinery and transportation equipment in emerging markets and the adoption of new
technologies for manufacturing and production.
Services Exports:
7. India is a significant exporter of services, including information technology, business process
outsourcing, and tourism. The major export destinations for Indian services include the USA,
the UK, and Singapore. However, the sector faces challenges such as rising competition from
other countries and issues related to compliance with international standards. Prospects for

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the sector include growing demand for digital services and e-commerce in developed markets
and the adoption of new technologies for service delivery.
Market:
The major export markets for Indian handicrafts include the USA, the UK, and Germany. For gems and
jewellery, major markets include the USA, Hong Kong, and the UAE. For carpets, major markets include
the USA, the UK, and Germany. For leather products, major markets include the USA, the UK, and
Germany. For cotton and cotton yarns, major markets include Bangladesh, Vietnam, and China. For
machinery and transport equipment, major markets include the USA, the UAE, and Germany. For
services exports, major markets include the USA, the UK, and Singapore. These markets are important
for the respective sectors due to factors such as high demand, established trade relationships, and
favorable policies.
However, it is important to note that these markets are also highly competitive, and Indian exporters
must continue to innovate and adopt new technologies to remain competitive. In addition, there is a
growing trend towards ethical and sustainable production, and Indian exporters must take steps to
ensure compliance with international standards and promote sustainable practices. Overall, while
these sectors face challenges, they also offer significant opportunities for Indian exporters to increase
their global footprint and contribute to the country's economic growth.

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Q&A
What is the export strategy ? Explain its characteristics.
An export strategy is a plan that outlines how a company will enter and compete in foreign
markets. It includes the company's goals for exporting, the products or services that will be
exported, the target markets, the marketing and distribution strategies, and the financial
resources that will be needed.
A successful export strategy is well-researched and based on a thorough understanding of
the target markets. It is also flexible and adaptable to changes in the market. Additionally, it
is supported by the company's management and staff, and it is adequately funded.
some of the characteristics of a successful export strategy
● Goals: The company's goals for exporting should be clear and specific. They should
be measurable, achievable, relevant, and time-bound. For example, the company
may want to increase sales by 10% in the next year, or it may want to enter a new
market.
● Products or services: The company needs to decide which products or services it will
export. These products or services should be well-suited for the target markets and
should be able to compete with similar products or services from other countries. The
company also needs to consider the cost of exporting, the availability of resources,
and the potential for profit.
● Target markets: The company needs to identify the target markets for its exports.
These markets should have the potential to generate sales and profits. The company
should consider the size of the market, the growth potential, the competitive
landscape, and the cultural factors that may affect the success of its products or
services.
● Marketing and distribution strategies: The company needs to develop marketing and
distribution strategies for its exports. These strategies should ensure that the
products or services are available to the target markets and that they are priced
competitively. The company should also consider the use of intermediaries, such as
distributors or agents, to help reach the target markets.

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● Financial resources: The company needs to determine the financial resources that
will be needed to implement its export strategy. These resources may include the
cost of product development, marketing, and distribution. The company should also
consider the use of government programs or loans to help finance its export
activities.
In addition to these characteristics, a successful export strategy also needs to be flexible
and adaptable to changes in the market. The company should be prepared to adjust its
strategy as needed to remain competitive. Additionally, the company should have the
support of its management and staff. Without this support, it will be difficult to implement and
execute the export strategy successfully.
Describe the steps involved in the formulation of export strategy?
steps involved in the formulation of export strategy:
1. Assess your company's readiness to export. This includes evaluating your product or
service, your target markets, and your financial resources.
2. Define your export goals. What do you want to achieve through exporting? Do you
want to increase sales, enter new markets, or expand your product range?
3. Research your target markets. This includes understanding the market size, growth
potential, competitive landscape, and cultural factors.
4. Choose your export entry mode. This could involve direct exporting, indirect
exporting, or a combination of both.
5. Develop your marketing and distribution strategies. How will you reach your target
markets and make your products or services available to them?
6. Set a budget and timeline for your export strategy. How much will you need to invest
in exporting, and how long will it take to achieve your goals?
7. Implement and monitor your export strategy. Be prepared to adjust your strategy as
needed based on market conditions.

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● Get help from experts. There are many government agencies and trade
organizations that can provide guidance and support.
● Start small. Don't try to export to too many markets at once. Start with a few key
markets and then expand as you gain experience.
● Be patient. It takes time to build a successful export business. Don't expect to see
results overnight.
By following these steps, you can increase your chances of success in exporting.
Here are some additional resources that you may find helpful:
● Export.gov: https://www.export.gov/
● International Trade Administration: https://www.trade.gov/
● Small Business Administration: https://www.sba.gov/
● World Trade Organization: https://www.wto.org/
Discuss the performance, problems and prospects of coffee exports from India.
India is a major producer and exporter of coffee. In 2022, India exported 4.02 lakh tonnes of
coffee, valued at ₹8,517 crore. This was a slight increase from the previous year. India's
share in the global coffee market is around 5%.
The performance of coffee exports from India has been relatively stable in recent years.
However, there have been some fluctuations, due to factors such as weather conditions,
changes in demand, and competition from other countries.
One of the major challenges for coffee exporters from India is the weather conditions. Coffee
is a sensitive crop and is susceptible to damage from pests, diseases, and adverse weather
conditions. This can lead to crop losses and can affect the quality of the coffee beans. In
2018, for example, coffee production in India was hit by a severe drought. This led to a
decline in exports and a loss of revenue for the industry.

24
Another challenge facing coffee exporters from India is competition from other countries.
Brazil, Colombia, and Vietnam are some of the leading coffee-producing countries in the
world. These countries have a larger production capacity and can offer lower prices. This
makes it difficult for Indian exporters to compete in the global market.
Despite these challenges, there are some positive prospects for coffee exports from India.
The demand for coffee is growing globally. This is due to the increasing popularity of coffee
drinks and the growing awareness of the health benefits of coffee. In recent years, India has
started exporting coffee to new markets, such as China and Japan. These markets offer
significant potential for growth.
The Indian government is also providing support to the coffee industry. This support includes
providing financial assistance, improving infrastructure, and promoting research and
development. This support will help the industry to address the challenges it faces and to
capitalize on the opportunities that exist in the global market.
Overall, the prospects for coffee exports from India are positive. The growing demand for
coffee and the expanding markets are likely to lead to increased exports in the future.
However, the industry will need to address the challenges it faces in order to achieve its full
potential.
One way that coffee exporters from India can address the challenges they face is to focus
on quality. India is known for producing high-quality coffee, and exporters should focus on
maintaining and improving the quality of their coffee. This can be done by using good
agricultural practices, processing the coffee carefully, and storing it properly.
Another way that coffee exporters from India can address the challenges they face is to
expand into new markets. India should expand into new markets, such as China and Japan.
These markets offer significant potential for growth. Exporters should conduct market
research to identify the most promising markets and to develop marketing strategies that are
tailored to these markets.
Finally, coffee exporters from India should promote Indian coffee in the international market.
This can be done through trade fairs, exhibitions, and other marketing activities. Exporters

25
should also work with retailers and distributors to make Indian coffee more widely available
in the global market.
By following these tips, India can increase the prospects of coffee exports and boost its
economy.
In addition to the above, here are some other factors that could affect the future of coffee
exports from India:
● The rise of the middle class in India and other developing countries.
● The increasing popularity of coffee drinks in the non-alcoholic beverage market.
● The growing demand for organic and fair trade coffee.
● The development of new coffee-based products, such as coffee extracts and
coffee-infused foods.
The coffee industry in India is facing some challenges, but there are also some positive
factors that could support future growth. By addressing the challenges and capitalizing on
the opportunities, the industry can continue to grow and contribute to the Indian economy.
Discuss the trends in and performance of exports of Cashew Kernels from India
India is the world's largest producer and exporter of cashew kernels. In 2022, India exported
76.8 million kg of cashew kernels, valued at ₹2,250 crore. This was a slight increase from
the previous year. India's share in the global cashew kernel market is around 40%.
The performance of cashew kernel exports from India has been relatively stable in recent
years, with the value of exports increasing steadily. However, there have been some
fluctuations in the volume of exports, which has been on an upward trend in recent years.
The United States, the United Arab Emirates, and the Netherlands are the top three export
destinations for cashew kernels from India. The demand for cashew kernels is also growing
in new markets, such as China and Japan.
One of the major challenges for cashew kernel exporters from India is the weather
conditions. Cashew trees are a sensitive crop and are susceptible to damage from pests,

26
diseases, and adverse weather conditions. This can lead to crop losses and can affect the
quality of the cashew kernels. In 2018, for example, cashew production in India was hit by a
severe drought. This led to a decline in exports and a loss of revenue for the industry.
Another challenge facing cashew kernel exporters from India is competition from other
countries. Vietnam is the world's second-largest producer of cashew kernels, and it is a
major competitor to India in the global market. Vietnam has a lower production cost than
India, and it is able to offer lower prices. This makes it difficult for Indian exporters to
compete in the global market.
Despite these challenges, there are some positive prospects for cashew kernel exports from
India. The demand for cashew kernels is growing globally, due to the increasing popularity of
cashew nuts as a snack food and the growing use of cashew kernels in confectionery and
other food products. In recent years, India has started exporting cashew kernels to new
markets, such as China and the United States. These markets offer significant potential for
growth.
The Indian government is also providing support to the cashew industry. This support
includes providing financial assistance, improving infrastructure, and promoting research
and development. This support will help the industry to address the challenges it faces and
to capitalize on the opportunities that exist in the global market.
Overall, the prospects for cashew kernel exports from India are positive. The growing
demand for cashew kernels and the expanding markets are likely to lead to increased
exports in the future. However, the industry will need to address the challenges it faces in
order to achieve its full potential.
Here are some additional factors that could affect the future of exports of cashew kernels
from India:
● The growth of the global middle class.
● The increasing popularity of cashew nuts as a snack food.
● The growing use of cashew kernels in confectionery and other food products.
● The development of new cashew-based products.

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● The entry of new competitors into the global market.
The cashew industry in India is facing some challenges, but there are also some positive
factors that could support future growth. By addressing the challenges and capitalizing on
the opportunities, the industry can continue to grow and contribute to the Indian economy.
In addition to the above, here are some other trends that could affect the future of cashew
kernel exports from India:
● The increasing popularity of online shopping.
● The growth of the organic and fair trade market.
● The development of new technologies for processing cashew kernels.
By understanding these trends, cashew kernel exporters from India can position themselves
to take advantage of the opportunities that exist in the global market.
Discuss the problems and prospects of food processive Industry in India. What are the major
markets for these products ?
The food processing industry in India is one of the largest and most important sectors of the
economy. It accounts for about 13% of the country's GDP and employs over 40 million
people. The industry is growing at a rapid pace, and it is expected to reach a value of $535
billion by 2025.
The food processing industry in India faces a number of challenges, including:
● Poor infrastructure: The food processing industry in India is hampered by poor
infrastructure, such as inadequate roads, railways, and ports. This makes it difficult
and expensive to transport food products, and it also limits the export potential of the
industry. For example, the lack of cold storage facilities makes it difficult to store
perishable food products, which can lead to losses.
● Lack of investment: The food processing industry in India is not getting the level of
investment that it needs to grow. This is due to a number of factors, including the
high cost of capital, the lack of government support, and the risk-averse nature of

28
investors. For example, the government could provide tax breaks or other incentives
to attract investment in the food processing industry.
● Inadequate technology: The food processing industry in India is still using outdated
technology. This leads to low productivity and high costs. For example, the use of
manual labor for harvesting and processing fruits and vegetables can lead to losses
due to spoilage.
● Lack of skilled manpower: The food processing industry in India is facing a shortage
of skilled manpower. This is due to the lack of training facilities and the low salaries
offered by the industry. For example, the government could provide training
programs to help people develop the skills they need to work in the food processing
industry.
Despite these challenges, the food processing industry in India has a number of prospects,
including:
● Growing demand: The demand for processed food is growing in India, due to the
rising incomes, changing lifestyles, and urbanization. For example, the growing
middle class in India is demanding more convenient and healthy food options.
● Expanding markets: The food processing industry in India is expanding into new
markets, such as the Middle East, Africa, and Southeast Asia. For example, the
increasing demand for Indian food products in these regions is creating new
opportunities for Indian food processing companies.
● Government support: The government is providing support to the food processing
industry, through schemes such as the Pradhan Mantri Kisan Sampada Yojana
(PMKSY). For example, the government is providing financial assistance to food
processing companies to set up new plants and expand their existing facilities.
The major markets for food processing products in India are:
● Domestic market: The domestic market is the largest market for food processing
products in India. The demand for processed food is growing in India, due to the
rising incomes, changing lifestyles, and urbanization. For example, the increasing
consumption of packaged foods and ready-to-eat meals is driving the growth of the
domestic market for food processing products.

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● Export market: The export market is also growing for food processing products in
India. India is exporting food products to a number of countries, such as the United
States, the United Arab Emirates, and the European Union. For example, the
growing demand for Indian food products in the Middle East is creating new
opportunities for Indian food processing companies.
The food processing industry in India is poised for growth. The industry is facing a number of
challenges, but it also has a number of prospects. By addressing the challenges and
capitalizing on the opportunities, the food processing industry in India can continue to grow
and contribute to the economy.
● Food safety concerns: There have been a number of food safety scandals in India in
recent years, which have raised concerns about the safety of processed food.
● Environmental concerns: The food processing industry can have a negative impact
on the environment, due to the use of water and energy, and the generation of
waste.
● Labor issues: The food processing industry in India is often characterized by low
wages and poor working conditions.
Despite these challenges, the food processing industry in India is still growing. The industry
is expected to continue to grow in the coming years, as the demand for processed food
increases. By addressing the challenges and taking steps to mitigate the environmental and
labor issues, the food processing industry in India can continue to grow and contribute to the
economy.
Discuss the performance, problems and prospects of engineering goods export from India?
The engineering goods sector is a major contributor to the Indian economy, accounting for
about 15% of the country's exports. In 2022, India exported engineering goods worth $70.72
billion, up from $63.29 billion in 2021. This represents a growth of 11.6%.
The performance of engineering goods exports from India has been driven by a number of
factors, including:

30
● Growing demand: The demand for engineering goods is growing globally, due to the
increasing industrialization and urbanization.
● Competitiveness: Indian engineering goods are competitive in the global market, due
to their low cost and high quality.
● Government support: The government is providing support to the engineering goods
sector, through schemes such as the Make in India initiative.
The engineering goods sector in India is dominated by a few large companies, such as
Bharat Heavy Electricals Limited (BHEL), Larsen & Toubro (L&T), and Tata Steel. These
companies are major exporters of engineering goods, and they have a strong presence in
the global market.
Despite the strong performance of engineering goods exports from India, there are a
number of challenges that the sector faces, including:
● Competition from China: China is a major exporter of engineering goods, and it is a
major competitor to India in the global market.
● High cost of production: The cost of production in India is relatively high, which
makes it difficult for Indian companies to compete with their counterparts in other
countries.
● Lack of skilled manpower: The engineering goods sector in India faces a shortage of
skilled manpower. This is due to the lack of training facilities and the low salaries
offered by the sector.
Despite these challenges, the engineering goods sector in India has a number of prospects,
including:
● Expanding markets: The engineering goods sector in India is expanding into new
markets, such as Africa and Southeast Asia.
● Government support: The government is providing support to the engineering goods
sector, through schemes such as the Make in India initiative.
● Innovation: Indian engineering companies are increasingly investing in research and
development, which is leading to the development of new and innovative products.

31
The prospects for engineering goods exports from India are positive. The sector is expected
to continue to grow in the coming years, as the demand for engineering goods increases
globally. By addressing the challenges and capitalizing on the opportunities, the engineering
goods sector in India can continue to grow and contribute to the economy.
some of the major markets for engineering goods exported from India:
● United States: The United States is the largest market for engineering goods
exported from India. In 2022, India exported $21.2 billion worth of engineering goods
to the United States, accounting for about 30% of total exports.
● European Union: The European Union is another major market for engineering
goods exported from India. In 2022, India exported $12.6 billion worth of engineering
goods to the European Union, accounting for about 18% of total exports.
● Middle East: The Middle East is a growing market for engineering goods exported
from India. In 2022, India exported $7.2 billion worth of engineering goods to the
Middle East, accounting for about 10% of total exports.
● Africa: Africa is a potential market for engineering goods exported from India. In
2022, India exported $4.8 billion worth of engineering goods to Africa, accounting for
about 7% of total exports.
By understanding the trends in the global market and the challenges and prospects facing
the engineering goods sector in India, exporters can position themselves to take advantage
of the opportunities that exist in the global market.
In addition to the above, here are some other factors that could affect the future of
engineering goods exports from India:
● The growth of the Indian economy: The growth of the Indian economy will create new
demand for engineering goods.
● The development of new technologies: The development of new technologies will
create new opportunities for engineering goods exporters.
● The entry of new competitors: The entry of new competitors from other countries
could pose a challenge to Indian exporters.

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By understanding these factors, exporters can position themselves to take advantage of the
opportunities and mitigate the risks that exist in the global market.
Examine the trends in and markets for exports and markets for exports of readymade
garments from india
India is the second-largest exporter of readymade garments in the world, after China. In
2022, India exported readymade garments worth $44.4 billion, up from $35.4 billion in 2021.
This represents a growth of 25.3%.
The performance of readymade garments exports from India has been driven by a number
of factors, including:
● Growing demand: The demand for readymade garments is growing globally, due to
the increasing urbanization and rising disposable incomes. This is especially true in
developing countries, where the middle class is growing rapidly.
● Competitiveness: Indian readymade garments are competitive in the global market,
due to their low cost and high quality. The low cost of labor in India is a major factor
in the competitiveness of Indian readymade garments. Additionally, Indian
manufacturers have a strong track record of quality control.
● Government support: The government is providing support to the readymade
garments sector, through schemes such as the Make in India initiative. The Make in
India initiative aims to promote manufacturing in India, and it includes a number of
measures to support the readymade garments sector.
The readymade garments sector in India is dominated by a few large companies, such as
Arvind Limited, Aditya Birla Fashion and Retail Limited, and Raymond Limited. These
companies are major exporters of readymade garments, and they have a strong presence in
the global market.
The major markets for readymade garments exported from India are:
● United States: The United States is the largest market for readymade garments
exported from India. In 2022, India exported $12.6 billion worth of readymade

33
garments to the United States, accounting for about 28% of total exports. The United
States is a major consumer of readymade garments, and it is a relatively open
market for Indian exporters.
● European Union: The European Union is another major market for readymade
garments exported from India. In 2022, India exported $9.6 billion worth of
readymade garments to the European Union, accounting for about 21% of total
exports. The European Union is a large and affluent market, and it is a major
destination for Indian readymade garments.
● Middle East: The Middle East is a growing market for readymade garments exported
from India. In 2022, India exported $6.4 billion worth of readymade garments to the
Middle East, accounting for about 14% of total exports. The Middle East is a wealthy
region, and there is a growing demand for readymade garments in the region.
● Africa: Africa is a potential market for readymade garments exported from India. In
2022, India exported $4.8 billion worth of readymade garments to Africa, accounting
for about 10% of total exports. Africa is a large and growing market, and there is a
growing demand for readymade garments in the region.
The trends in the global market for readymade garments are constantly evolving. Some of
the key trends include:
● The growth of online retail: The growth of online retail is creating new opportunities
for readymade garments exporters. Online retailers are increasingly selling
readymade garments, and this is creating new opportunities for Indian exporters.
● The rise of sustainable fashion: The rise of sustainable fashion is creating new
opportunities for readymade garments exporters who are able to offer
environmentally friendly products. Sustainable fashion is becoming increasingly
popular, and this is creating new opportunities for Indian exporters who are able to
offer products that are made from sustainable materials.
● The increasing popularity of ethnic wear: The increasing popularity of ethnic wear is
creating new opportunities for readymade garments exporters who are able to offer
traditional Indian clothing. Ethnic wear is becoming increasingly popular, and this is
creating new opportunities for Indian exporters who are able to offer products that
are inspired by Indian culture.

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By understanding the trends in the global market and the challenges and prospects facing
the readymade garments sector in India, exporters can position themselves to take
advantage of the opportunities that exist in the global market.
Discuss the performance, problems and prospects of Handicrafts exports from India
India is a major exporter of handicrafts, and the sector is estimated to contribute around $20
billion to the Indian economy. In 2022, India exported handicrafts worth $16.2 billion, up from
$14.4 billion in 2021. This represents a growth of 12.5%.
The performance of handicrafts exports from India has been driven by a number of factors,
including:
● Growing demand: The demand for handicrafts is growing globally, due to the
increasing popularity of Indian culture and the rising disposable incomes.
● Competitiveness: Indian handicrafts are competitive in the global market, due to their
high quality and unique designs. Indian handicrafts are known for their intricate
craftsmanship and use of high-quality materials.
● Government support: The government is providing support to the handicrafts sector,
through schemes such as the Export Promotion Council for Handicrafts (EPCH). The
EPCH provides a number of services to handicraft exporters, such as market
research, training, and export promotion.
The handicrafts sector in India is dominated by a few large clusters, such as Moradabad
(silver jewelry), Jaipur (stone-inlaid jewelry), and Kutch (embroidery). These clusters are
home to a large number of artisans who are skilled in making handicrafts.
The major markets for handicrafts exported from India are:
● United States: The United States is the largest market for handicrafts exported from
India. In 2022, India exported $4.8 billion worth of handicrafts to the United States,
accounting for about 30% of total exports. The United States is a major consumer of
handicrafts, and it is a relatively open market for Indian exporters.

35
● European Union: The European Union is another major market for handicrafts
exported from India. In 2022, India exported $3.6 billion worth of handicrafts to the
European Union, accounting for about 22% of total exports. The European Union is a
large and affluent market, and it is a major destination for Indian handicrafts.
● Middle East: The Middle East is a growing market for handicrafts exported from
India. In 2022, India exported $1.8 billion worth of handicrafts to the Middle East,
accounting for about 11% of total exports. The Middle East is a wealthy region, and
there is a growing demand for handicrafts in the region.
● Japan: Japan is a potential market for handicrafts exported from India. In 2022, India
exported $1.2 billion worth of handicrafts to Japan, accounting for about 7% of total
exports. Japan is a developed country with a high disposable income, and there is a
growing demand for handicrafts in the country.
The challenges faced by the handicrafts sector in India include:
● Competition from other countries: India faces competition from other countries, such
as China and Indonesia, which are also major exporters of handicrafts. These
countries offer lower prices, which can make it difficult for Indian exporters to
compete.
● Undervaluation of handicrafts: The value of handicrafts is often undervalued, which
can lead to losses for exporters. This is because handicrafts are often made from
low-cost materials, but they can be sold for high prices due to their intricate
craftsmanship and unique designs.
● Lack of awareness: There is a lack of awareness about Indian handicrafts in the
global market. This is because Indian handicrafts are often seen as being too
expensive or too traditional.
The prospects for handicrafts exports from India are positive. The sector is expected to
continue to grow in the coming years, as the demand for handicrafts increases globally. By
addressing the challenges and capitalizing on the opportunities, the handicrafts sector in
India can continue to grow and contribute to the economy.
Here are some of the things that can be done to improve the prospects of handicrafts
exports from India:

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● Promoting Indian handicrafts in the global market: The government and the industry
need to work together to promote Indian handicrafts in the global market. This can be
done through trade fairs, exhibitions, and online marketing.
● Raising awareness about Indian handicrafts: There needs to be more awareness
about Indian handicrafts in the global market. This can be done through educational
programs, media campaigns, and social media.
● Improving the quality of handicrafts: The quality of handicrafts needs to be improved
in order to compete with other countries. This can be done through training
programs, technology transfer, and quality control measures.
● Innovating in handicrafts: The handicrafts sector needs to innovate
Problems of India's Exports
A sectoral strategy for exports is a plan that businesses can use to identify and target
specific markets, develop products and services that meet the needs of those markets, and
build relationships with buyers. This strategy can be particularly helpful for businesses that
are new to exporting or that are looking to expand their exports into new markets.
There are a number of benefits to having a sectoral strategy for exports. First, it can help
businesses to focus their efforts on specific sectors, which can lead to increased efficiency
and productivity. For example, a business that specializes in exporting textiles can focus its
marketing and sales efforts on countries that have a high demand for textiles. This can help
the business to reach a wider audience and to achieve its export goals more quickly.
Second, a sectoral strategy can help businesses to coordinate their activities with other
businesses in the same sector. This can lead to increased synergies and opportunities. For
example, a group of businesses that export textiles can work together to develop new
products, to share marketing resources, and to enter new markets. This can help each
business to grow its exports and to achieve its business goals more effectively.
Third, a sectoral strategy can help businesses to increase their visibility in the global market.
This can lead to increased opportunities for sales and partnerships. For example, a business

37
that exports textiles can participate in trade shows and other events that are targeted at
buyers from specific countries. This can help the business to raise its profile and to build
relationships with potential buyers.
Fourth, a sectoral strategy can help businesses to improve their access to finance. Banks
and other financial institutions are more likely to lend to businesses that have a clear
strategy and a track record of success. For example, a business that has a sectoral strategy
for exports can use this strategy to demonstrate to lenders that it has a sound business plan
and that it is likely to be successful in exporting its products or services.
Overall, a sectoral strategy for exports can be a valuable tool for businesses that are looking
to expand their exports and grow their businesses. By focusing on specific sectors,
businesses can increase their efficiency, productivity, and visibility. They can also improve
their access to finance and build relationships with potential buyers.
In addition to the benefits mentioned above, a sectoral strategy for exports can also help
businesses to:
● Understand the needs of foreign markets: By focusing on specific sectors,
businesses can gain a better understanding of the needs of foreign markets and how
to reach them. This can help businesses to develop products and services that meet
the needs of those markets and to price their products and services competitively.
● Reduce costs: By focusing on specific sectors, businesses can reduce their costs by
taking advantage of economies of scale and by negotiating better deals with
suppliers.
● Improve their competitive position: By focusing on specific sectors, businesses can
improve their competitive position by developing a strong brand and by building
relationships with key players in the sector.
Overall, a sectoral strategy for exports can be a valuable tool for businesses that are looking
to expand their exports and grow their businesses. By focusing on specific sectors,
businesses can increase their efficiency, productivity, and visibility. They can also improve
their access to finance and build relationships with potential buyers.

38
Carpets exports from India
● India is the world's largest exporter of handmade carpets, accounting for around 40%
of the global market.
● In 2022, India exported carpets worth $2.23 billion, up from $1.92 billion in 2021.
This represents a growth of 16%.
● The United States is the largest market for Indian carpets, followed by the European
Union and the Middle East.
● The Indian carpet industry is concentrated in the state of Uttar Pradesh, which
accounts for around 70% of the country's carpet production.
● The Indian carpet industry employs around 6 million people, mostly women and
children.
● The Indian carpet industry is facing a number of challenges, including competition
from China, rising labor costs, and the lack of skilled labor.
● However, the Indian carpet industry is also undergoing a number of reforms, such as
the introduction of the Geographical Indication (GI) tag for certain types of carpets,
which is expected to help the industry to grow in the coming years.
some of the factors that have contributed to the growth of carpet exports from India:
● The increasing demand for handmade carpets: Handmade carpets are increasingly
in demand due to their unique designs and high quality.
● The growing popularity of Indian culture: Indian culture is becoming increasingly
popular around the world, which has led to an increased demand for Indian
handicrafts, including carpets.
● The favorable government policies: The Indian government has implemented a
number of policies to promote the export of carpets, such as the provision of export
incentives and the simplification of export procedures.
The Indian carpet industry is expected to continue to grow in the coming years, driven by the
increasing demand for handmade carpets and the growing popularity of Indian culture.

39
However, the industry will need to address the challenges it faces, such as competition from
China and rising labor costs, in order to sustain its growth.
Leather exports from India?
Sure. Here are some details about leather exports from India:
● India is the second-largest exporter of leather in the world, after China.
● In 2022, India exported leather worth $4.87 billion, up from $3.67 billion in 2021. This
represents a growth of 32%.
● The United States is the largest market for Indian leather, followed by the European
Union and China.
● The Indian leather industry is concentrated in the states of Tamil Nadu, Uttar
Pradesh, and West Bengal.
● The Indian leather industry employs around 4 million people.
● The Indian leather industry is facing a number of challenges, including competition
from China, rising labor costs, and the lack of skilled labor.
● However, the Indian leather industry is also undergoing a number of reforms, such as
the introduction of the Goods and Services Tax (GST) and the establishment of the
National Leather Development Council, which is expected to help the industry to
grow in the coming years.
Here are some of the factors that have contributed to the growth of leather exports from
India:
● The increasing demand for leather products: Leather products are increasingly in
demand due to their durability and versatility.
● The growing popularity of Indian leather: Indian leather is known for its high quality
and unique designs.
● The favorable government policies: The Indian government has implemented a
number of policies to promote the export of leather, such as the provision of export
incentives and the simplification of export procedures.

40
The Indian leather industry is expected to continue to grow in the coming years, driven by
the increasing demand for leather products and the growing popularity of Indian leather.
However, the industry will need to address the challenges it faces, such as competition from
China and rising labor costs, in order to sustain its growth.
How can an exporter, in this current COVID- hit situation, can handle the chalenges related
to the export of handicrafts from India?
The COVID-19 pandemic has had a significant impact on the global economy, and the
export of handicrafts from India has not been immune. Here are some tips on how an
exporter can handle the challenges related to the export of handicrafts from India in this
current COVID-hit situation:
● Stay up-to-date on the latest COVID-19 regulations: The COVID-19 pandemic is
constantly evolving, and so are the regulations governing international trade. It is
important for exporters to stay up-to-date on the latest regulations so that they can
comply with them and avoid any delays or disruptions to their exports.
● Focus on online marketing and sales: The COVID-19 pandemic has led to a decline
in in-person trade shows and exhibitions, which are traditional channels for
promoting and selling handicrafts. Exporters should focus on online marketing and
sales, such as through social media and e-commerce platforms.
● Embrace digital technologies: Digital technologies can help exporters to streamline
their operations and improve their efficiency. For example, exporters can use online
platforms to manage their inventory, track orders, and communicate with buyers.
● Build relationships with buyers: Building relationships with buyers is essential for
long-term success in the export market. Exporters should reach out to potential
buyers and build relationships with them. This can be done through online platforms,
trade shows, or other events.
● Offer competitive prices: In the current competitive market, it is important for
exporters to offer competitive prices. This can be done by reducing costs or by
increasing efficiency.
● Provide excellent customer service: Excellent customer service is essential for
building customer loyalty and repeat business. Exporters should make sure to
provide prompt and accurate responses to customer inquiries and complaints.

41
By following these tips, exporters can handle the challenges related to the export of
handicrafts from India in this current COVID-hit situation and continue to grow their
businesses.
In addition to the above, here are some other things that exporters can do to handle the
challenges of exporting handicrafts in the COVID-19 era:
● Focus on niche markets: Instead of trying to compete in the mass market, exporters
can focus on niche markets where there is less competition. This could involve
targeting specific countries, regions, or demographics.
● Create unique and high-quality products: In order to stand out from the competition,
exporters need to create unique and high-quality products. This could involve using
traditional techniques or materials, or incorporating new designs or technologies.
● Build strong relationships with suppliers: Exporters need to build strong relationships
with their suppliers in order to ensure a reliable supply of high-quality products. This
could involve working with suppliers who are certified or accredited, or who have a
good track record of quality.
● Invest in marketing and promotion: In order to reach potential buyers, exporters need
to invest in marketing and promotion. This could involve using online platforms, trade
shows, or other channels.
● Be patient and persistent: The export market can be challenging, but it is important to
be patient and persistent. Exporters need to be willing to put in the time and effort to
succeed.
Perform SWOT analysis on the export of cotton and cotton yarns.
Sure, here is a longer answer on the SWOT analysis of the export of cotton and cotton
yarns, avoiding repetition:
Strengths

42
● India is the world's second-largest producer of cotton, and the third-largest exporter
of cotton yarn.
● India has a long history of exporting cotton and cotton yarns, dating back to the 17th
century.
● India has a skilled workforce with expertise in the production of cotton and cotton
yarns.
● India has a competitive labor cost advantage, which makes Indian cotton and cotton
yarns more affordable than those from other countries.
● India has a favorable government policy environment for the export of cotton and
cotton yarns. The government provides a number of incentives to exporters, such as
export tax breaks and duty-free imports of raw materials.
Weaknesses
● The Indian cotton industry is facing some challenges, such as the rising cost of
inputs and the shortage of skilled labor.
● India's cotton exports are concentrated in a few countries, such as Bangladesh,
China, and Vietnam. This makes India's cotton exports vulnerable to changes in the
demand from these countries.
● India's cotton exports are also vulnerable to changes in the global cotton market. For
example, if the global cotton market becomes volatile, the prices of cotton and cotton
yarns could fluctuate, which could affect India's exports.
Opportunities
● The global demand for cotton and cotton yarns is expected to grow in the coming
years, due to the increasing demand for clothing and textiles.
● India can capitalize on the growing demand for cotton and cotton yarns in emerging
markets, such as Africa and Southeast Asia.
● India can also export cotton and cotton yarns to new markets, such as the European
Union and the United States.
● The increasing demand for sustainable clothing is creating new opportunities for
Indian exporters of cotton and cotton yarns. Cotton is seen as a sustainable fiber,
and Indian exporters can position their products as being environmentally friendly.

43
● The growth of the e-commerce market is creating new opportunities for Indian
exporters of cotton and cotton yarns. E-commerce platforms allow exporters to reach
a wider audience of buyers.
● The development of new technologies, such as new spinning and weaving
technologies, could create new opportunities for Indian exporters of cotton and
cotton yarns. These technologies could help to improve the quality and efficiency of
the production process, which could make Indian cotton and cotton yarns more
competitive in the global market.
Threats
● The increasing competition from other countries: India faces increasing competition
from other countries, such as China, in the export of cotton and cotton yarns. This is
because these countries have a lower cost of production.
● The volatility of the global cotton market: The global cotton market is volatile, which
can pose a risk to Indian exporters of cotton and cotton yarns. This is because
changes in the global cotton market can lead to changes in the prices of cotton and
cotton yarns.
● The impact of climate change: Climate change is expected to have a negative impact
on the cotton industry in India. This is because climate change is expected to lead to
changes in the weather patterns, which could affect the production of cotton.
By addressing these opportunities and threats, the Indian cotton and cotton yarns export
sector can continue to grow and contribute to the Indian economy.
In addition to the above, here are some other things that the Indian cotton and cotton yarns
export sector can do to address the challenges it faces:
● Invest in research and development: The Indian cotton industry can invest in
research and development to develop new varieties of cotton that are more resistant
to pests and diseases, and that require less water.
● Promote sustainable practices: The Indian cotton industry can promote sustainable
practices, such as organic farming and water conservation. This will help to protect
the environment and make Indian cotton more competitive in the global market.

44
● Strengthen the supply chain: The Indian cotton industry can strengthen the supply
chain by improving the coordination between farmers, ginners, spinners, and
weavers. This will help to ensure that the industry has a reliable supply of
high-quality cotton.
● Improve the quality of products: The Indian cotton industry can improve the quality of
its products by adopting new technologies and standards. This will help to make
Indian cotton and cotton yarns more competitive in the global market.
By taking these steps, the Indian cotton and cotton yarns export sector can continue to grow
and contribute to the Indian economy.
Point down the process and exporter goes through when he does market research and
analysis before entering the export business. Also mention various categories of service
exports.
Sure, here are the steps involved in market research and analysis for export business:
1. Define the product or service to be exported: The first step is to define the product or
service that will be exported. This includes identifying the target market, the
competitive landscape, and the potential demand for the product or service.
2. Analyze the target market: The next step is to analyze the target market. This
includes understanding the demographics of the target market, their buying habits,
and their needs and wants.
3. Assess the competitive landscape: The exporter should also assess the competitive
landscape. This includes identifying the major competitors, their strengths and
weaknesses, and their pricing strategies.
4. Analyze the potential demand: The exporter should also analyze the potential
demand for the product or service. This includes understanding the size of the
market, the growth potential, and the barriers to entry.
5. Identify the export opportunities: Once the market research is complete, the exporter
can identify the export opportunities. This includes identifying the countries that are
potential markets for the product or service, and the potential buyers.

45
6. Develop an export strategy: The exporter should then develop an export strategy.
This includes setting export goals, developing a marketing plan, and identifying the
resources needed to execute the plan.
Here are some of the various categories of service exports:
● Business services: This includes services such as consulting, accounting, and legal
services.
● Information and communication technology (ICT) services: This includes services
such as software development, IT consulting, and call center services.
● Travel and tourism services: This includes services such as tour packages, hotel
accommodation, and travel insurance.
● Financial services: This includes services such as banking, insurance, and
investment services.
● Education and training services: This includes services such as distance learning,
language training, and executive education.
By following these steps, exporters can increase their chances of success in the export
market.
Here are some additional tips for market research and analysis for export business:
● Use a variety of sources: The exporter should use a variety of sources to conduct
market research, such as government reports, industry publications, and trade
shows.
● Talk to potential buyers: The exporter should also talk to potential buyers to get their
feedback on the product or service.
● Visit the target market: If possible, the exporter should visit the target market to get a
better understanding of the local market conditions.
● Be flexible: The exporter should be flexible and willing to adapt their product or
service to meet the needs of the target market.
By following these tips, exporters can conduct market research and analysis that will help
them to succeed in the export market.

46
What position India holds in the export of coffee around the world and also pen down the
countries it has been exporting to?
India is the world's 12th largest exporter of coffee. In 2022, India exported 3.14 lakh tonnes
of coffee, valued at $825 million. The top export destinations for Indian coffee are:
● United States: The United States is the largest export market for Indian coffee,
accounting for 30% of total exports.
● European Union: The European Union is the second-largest export market for Indian
coffee, accounting for 25% of total exports.
● Middle East: The Middle East is the third-largest export market for Indian coffee,
● Russia: Russia is the fourth-largest export market for Indian coffee, accounting for
10% of total exports.
● Japan: Japan is the fifth-largest export market for Indian coffee, accounting for 5% of
total exports.
India's coffee exports have been growing steadily in recent years, and the country is
expected to continue to be a major exporter of coffee in the coming years.
Here are some of the factors that have contributed to the growth of India's coffee exports:
● Increased demand for coffee: The global demand for coffee has been increasing in
recent years, due to the growing popularity of coffee beverages.
● Improved quality of Indian coffee: The quality of Indian coffee has improved in recent
years, due to the adoption of better cultivation and processing practices.
● Government support: The Indian government has provided support to the coffee
sector, such as the provision of subsidies and the establishment of research centers.
These factors have helped India to become a major exporter of coffee in the world.
Discuss the global opportunities, as well as challenges , that have been faced by Indian
exporters during this pandemic era regarding processed foood item's export

47
Sure, here are some of the global opportunities and challenges that Indian exporters of
processed food items have faced during the pandemic era:
Opportunities:
● Increased demand for processed food: The pandemic has led to an increased
demand for processed food, as people have been spending more time at home. This
has created new opportunities for Indian exporters of processed food items.
● New markets: The pandemic has also created new markets for Indian exporters of
processed food items. For example, the demand for Indian processed food items has
increased in countries such as the United States and Europe, as people have been
looking for new and exotic food items.
● Online sales: The pandemic has also led to an increase in online sales of processed
food items. This has created new opportunities for Indian exporters of processed
food items, as they can now reach a wider audience through online platforms.
Challenges:
● Supply chain disruptions: The pandemic has caused disruptions to the global supply
chain, which has made it difficult for Indian exporters of processed food items to get
their products to market.
● Increased competition: The pandemic has also led to increased competition from
other countries, such as China and Thailand, which are also major exporters of
processed food items.
● Tariff barriers: The pandemic has also led to the imposition of tariff barriers by some
countries, which has made it more difficult for Indian exporters of processed food
items to export their products.
Despite these challenges, Indian exporters of processed food items have been able to
capitalize on the opportunities created by the pandemic. The sector is expected to continue
to grow in the coming years, as the demand for processed food continues to increase.
Here are some additional tips for Indian exporters of processed food items to overcome the
challenges posed by the pandemic:

48
● Focus on niche markets: Instead of trying to compete in the mass market, Indian
exporters can focus on niche markets where there is less competition. This could
involve targeting specific countries, regions, or demographics.
● Create unique and high-quality products: In order to stand out from the competition,
Indian exporters need to create unique and high-quality products. This could involve
using traditional techniques or materials, or incorporating new designs or
technologies.
● Build strong relationships with buyers: Indian exporters need to build strong
relationships with their buyers in order to ensure a reliable supply of high-quality
products. This could involve working with buyers who are certified or accredited, or
who have a good track record of quality.
● Invest in marketing and promotion: In order to reach potential buyers, Indian
exporters need to invest in marketing and promotion. This could involve using online
platforms, trade shows, or other channels.
● Be patient and persistent: The export market can be challenging, but it is important to
be patient and persistent. Exporters need to be willing to put in the time and effort to
succeed.
Critically examine the hurdles faced by the leather sector export from India. Also highlight its
major export markets as well as their global performance
Sure, here are some of the hurdles faced by the leather sector export from India:
● High cost of raw materials: The cost of raw materials, such as hides and skins, is
high in India. This is due to the fact that India is a major producer of leather, and the
demand for raw materials is high.
● Competition from other countries: India faces competition from other countries, such
as China and Brazil, which are also major exporters of leather. These countries have
lower labor costs, which gives them an advantage over India.
● Lack of infrastructure: India's infrastructure is not well-developed, which can make it
difficult and expensive to export leather. This is because the country's roads and
ports are not well-maintained, and there is a shortage of cold storage facilities.
● Government policies: The Indian government's policies can sometimes be a hurdle
for the leather sector. For example, the government has imposed a ban on the export

49
of raw hides and skins, which has made it difficult for Indian exporters to compete
with other countries.
Despite these hurdles, the Indian leather sector has been growing in recent years. In 2022,
India exported leather worth $4.87 billion, up from $3.67 billion in 2021. This represents a
growth of 32%.
The major export markets for Indian leather are:
● United States: The United States is the largest export market for Indian leather,
● European Union: The European Union is the second-largest export market for Indian
leather, accounting for 20% of total exports.
● China: China is the third-largest export market for Indian leather, accounting for 15%
of total exports.
● Japan: Japan is the fourth-largest export market for Indian leather, accounting for
10% of total exports.
● South Korea: South Korea is the fifth-largest export market for Indian leather,
India's leather sector has been able to achieve global success due to the following factors:
● The availability of skilled labor: India has a large pool of skilled labor, which is
essential for the leather sector.
● The use of traditional techniques: India uses traditional techniques to produce
leather, which gives its products a unique character.
● The focus on quality: Indian exporters focus on quality, which has helped them to
gain a reputation for producing high-quality leather products.
The Indian leather sector is expected to continue to grow in the coming years. This is due to
the increasing demand for leather products, both domestically and internationally.
what is future prospects of tobacco products exports from India in the current scenario? Also
state the measures taken by the Indian Government to boost the scale of export.

Sectoral Strategy For Exports 525.pdf

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